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Credit spread

• Is an option position whereby the end result is a credit. For example, the investor who places a vertical bear call spread receives a credit. Similarly, the trader who places a vertical bull put spread receives a premium credit.

• Related: Quality spread

 
 

Follow this link for all the terms related to creditspread.

 
 Embedded terms in definition
 Bear
Bull
Call
Credit
Investor
Option
Position
Premium
Put
Quality spread
Spread
 
 Related Terms
 

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